Intrinsic Motivations Outweigh Extrinsic Rewards, Boosting Charitable Giving and Workplace Productivity
Incentives, like money, drive our decisions, but other factors also play a role. There are two types of motivations: intrinsic (internal) and extrinsic (external). External rewards can overshadow our internal motivations. Being seen as good or making charitable donations can also drive our choices. The theory of efficiency wages shows how economic and psychological factors influence work effort. Understanding these motivations can help us make better decisions.